Imported Intermediate Inputs and Export Diversification in Low-Income Countries
Paper studies role of imports of intermediate inputs as a determinant of export diversification and of transitions along supply chains towards producing more downstream products
Abstract
Economists and policy鈥恗akers have advocated the need of developing countries, and in particular low鈥恑ncome countries, of moving away from exclusively producing commodities and into manufacturing, and of increasing the value鈥恆dded of their products. For instance, Simon Johnson, Jonathan Ostry and Arvind Subramanian (2007) find this to be one of the key constraints on growth in African countries. This paper studies the role of imports of intermediate inputs as a determinant of export diversification and of transitions along supply chains towards producing more downstream products. The discussion is centered on the experience of low income countries and in particular, Sub鈥怱aharan countries. The analysis studies detailed trade level data spanning the period 1962鈥�2000, and exploits variation in trade policy across time, countries and industries.
Citation
Benguria, F. Imported Intermediate Inputs and Export Diversification in Low-Income Countries. Presented at Joint RES-SPR Conference on Macroeconomic Challenges FacingLow-Income Countries,Washington, DC, January 30 2014. International Monetary Fund, Washington DC, USA (2014) 29 pp.
Links
(PDF, 355KB)